STORY HIGHLIGHTS

Budapest has no plan to follow London's example in leaving the EU, said economy minister Mihaly Varga

Hungary's government is drawing up a list of incentives to lure companies leaving Britain after the Brexit vote, economy minister Mihaly Varga told business daily Vilaggazdasag in an interview published today.

The interview did not go into details on what sort of offers would be made to persuade companies to move to Hungary, or how far the plan had progressed.

Varga said Britain's exit from the EU would probably affect Hungary in the longer term, as it would hit the EU's budget, and thus the development funds flowing to eastern Europe.

But Varga said this was not an immediate issue, as Britain's negotiations with the EU would last at least for two years, and there was no need to amend Hungary's budget this year or next.

He said Hungary also had no plan to follow Britain's example in leaving the EU.

"There is no such intention, no such plan, no such scenario or idea," Varga told the paper.

He said he expected market turbulence to subside this week after Friday's sharp falls.